Treasury Department Appreciates Intervention Data
The US Treasury Department said India has been exemplary in publishing its foreign exchange market interventions, adding that New Delhi should allow the exchange rate to move flexibly to reflect economic fundamentals.
“(Indian) authorities should allow the exchange rate to move flexibly to reflect economic fundamentals, limit foreign exchange interference under conditions of chaotic market conditions, and avoid further significant reserve accumulation, “It said.
“As the economic recovery progresses, authorities should continue to pursue structural reforms that can help elevate productivity and living standards while supporting an inclusive and green recovery,” it said.
In its semi-annual report to Congress, the Treasury reviewed and evaluated the policies of its major trading partners during the four quarters through June 2021, which comprise more than 80% of its foreign trade in goods and services.
According to the Treasury Department, India’s goods and services trade surplus with the US stood at $40 billion in the four quarters to June 2021, a substantial increase from the relatively consistent level of around $30 billion from 2013 to 2019.
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